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The Farmer's Wife is a country store specializing in knickknacks suitable for a farm-house decor. One item experiencing a considerable buying frenzy is a miniature

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The Farmer's Wife is a country store specializing in knickknacks suitable for a farm-house decor. One item experiencing a considerable buying frenzy is a miniature Holstein cow. Average weekly demand is 30 cows, with a standard deviation of 5 cows. The cost to place a replenishment order is $15 and the holding coast is $0.75/cow/year. The supplier, however, is in China. The lead time for new orders is 7 weeks, with a standard deviation of 2 weeks. The Farmer's Wife, which is open only 50 weeks a year, wants to develop a continuous review inventory system for this item with a cycle-service level of 90 percent Refer to the standard normal table for z-values. a. Specify the continuous review system for the cows. What order quantity should be used? cows (Enter your response rounded to the nearest whole number.) What reorder point should be used? cows. (Enter your response rounded to the nearest whole number.) b. What is the total annual cost for the system you developed?. (Enter your response rounded to two decimal places.)

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